CBRE Capital Markets has arranged the sale of the Southeast Residential Portfolio, a 24-property multifamily portfolio, to San Diego-based Strata Equity Group, Inc. for more than $720 million. The SERP portfolio consists of 6,294 units in suburban locations throughout 13 metro areas in Georgia, North Carolina, Tennessee, and South Carolina. The properties were built between 1985 and 2000. CBRE Capital Markets’ Debt & Structured Finance team secured approximately $500 million of financing on behalf of the buyer with a mixture of seven- and ten-year fixed and floating rate loans provided by Freddie Mac.
“This portfolio affords us with a truly unique opportunity to scale our platform while also securing a very attractive, risk-adjusted return for our investors,” said David Michan, President of Strata Equity Group. “We believe the long-term fundamentals of the apartment sector, particularly Class B product, remain healthy; our investment in SERP reinforces that belief,” added Scott Wittman, Strata’s Director of Investments.
